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Healthcare services provider $UNH revised its FY15 net earnings forecast of approx. $6.00 per share reflected by expected pre-tax earnings of $425MM or $0.26 per share in 4Q15, driven by projected losses on individual exchange-compliant products in 2015 and 2016. For FY16, $UNH expects net earnings of $7.10-7.30 per share.
For 2018, health insurance provider UnitedHealth expects its profits between $16.7-17.3Bil. $UNH expects its premium revenues to reduce $400-500MM due to regulatory changes in Affordable Care Act. The company also plans to invest $200-300MM this year in artificial intelligence, data analytics etc. which would improve its engagement with customers.
UnitedHealth's 2017 medical care ratio increased 90 basis points to 82.1% vs. last year. Medical care ratio shows how much money is spent on healthcare from the premiums received by the health insurer. $UNH expects its 2018 medical care ratio to come around 81.5% plus or minus 50 basis points.
UnitedHealth's 4Q profits spiked to $3.62Bil whereas revenue was up 9% to $52.06Bil. $UNH's Health Insurance segment brings in more revenues, but Optum segment contributed more to its profits. Optum's profits were up 22% reaching $2.2Bil in 4Q. For 2017, the company reported a non-cash tax benefit of $1.22 per share due to tax reforms.
Largest US health insurer UnitedHealth's profits more than doubled in the fourth quarter to $3.61Bil due to tax benefits. $UNH also crossed $200Bil mark in revenues for FY17. The company now expects to save $1.7Bil in FY18 due to tax reforms. For 2018, the health insurer expects GAAP EPS between $11.65-11.95 and non-GAAP EPS between $12.30-12.60.
$UNH's health services business Optum seems to be on a roll. Optum's third quarter revenues eclipsed 8.4% to $23Bil, which is nearly half of $UNH’s total revenues. All business segments of Optum have generated double-digit earnings growth in 3Q. OptumHealth now directly reaches 90MM US consumers, which is an increase of 9MM vs. last year.
$UNH is the first firm amongst its peers to report earnings every quarter. For the first time in its history, it is on track to cross revenues of $200Bil in 2017. 3Q revenues jumped 9% to $50.3Bil. $UNH's withdrawal from ACA individual insurance markets, along with a health insurance tax deferral, reduced revenues by $1.6Bil and growth rate by 4%.
$UNH reported 26% jump in its profits aided by strong growth in its Optum business. This is the first quarter the health insurer is reporting results under the helm of new CEO Dave Wichmann, who replaced Steve Hemsley in September. The company also raised its outlook for 2017. It now expects GAAP EPS to touch $9.45 and adjusted EPS to reach $10.
Optum, part of $UNH, and $ABCO's health care business will combine. The BoD of $ABCO unanimously approved the merger agreement and has recommended that its stockholders adopt the merger agreement. The merger is expected to close by the end of 2017 or in early 2018. The transaction is expected to be neutral to $UNH's EPS in the first year.
Diversified healthcare provider $UNH's Board has authorized cash dividends for its shareholders. The company's shareholders will receive $0.75 per share, which will be paid on September 19. Cut-off date for dividend payment is September 8.
Healthcare provider $UNH announced changes in its leadership team. Effective September 1, David Wichmann who is currently donning the role of President will take over as CEO of the company. Current CEO Stephen will be taking the newly created role of Executive Chairman, while current Chairman Richard Burke will become lead independent director.
$UNH announced that Valerie Montgomery Rice and Sir Andrew Witty have joined its BoD. Rice is the President of the Morehouse School of Medicine, a medical school in Atlanta, Georgia, while Witty was CEO and a board member of GlaxoSmithKline plc.
Optum, health insurance giant $UNH's business unit, announced that Patty Horoho is joining the firm. Patty would be focused on providing Optum's holistic service to defense members, veterans and their families. Horoho was the first woman and the first nurse to hold the position of Army Surgeon General and headed the US Army Medical Command.
In Optum segment, $UNH is focusing on three key areas for growth; strong sales pipeline of $40Bil, growing YTD sales and backlog. On MedicareAdvantage, the company expects to outperform the market in 2018 with a positive long-term outlook for the industry. $UNH also feels that the return of insurer's fee will be the single largest headwind in 2018.
Despite forgoing over $1.8Bil in revenues due to the withdrawal from the ACA individual insurance market and the health insurance tax moratorium, $UNH revenues increased nearly 9% to $40.8Bil. Health insurer also announced that the partnership with AARP will continue through at least 2025 to offer Medicare related products under AARP brand.
Health insurance giant $UNH said it served 2.5MM more people in 2Q17 vs. 2Q16, excluding the individual market. The business model of the insurer is focused on addressing the healthcare needs of consumers in areas like group Medicare Advantage, Medicaid programs in emerging markets like Brazil and established markets.
$UNH expects its stellar performance in first half to carry forward in the second half of 2017 and into 2018. On a global basis, the insurer serves 139MM people, including 126MM in the United States. UnitedHealth believes it is on target to exceed the $200Bil mark in 2017 for the first time.